Wii U sales are lower than expected but don’t expect a price drop
2/3/13 12:00pm
If you’ve been following Nintendo’s fiscal situation, you’d know this wasn’t an overly pleasant week for company president Satoru Iwata, especially when it comes to the status of the Wii U.
Investor’s were told the company is lowering its fiscal climate expectations for the current fiscal year (which in ends in March), with a fairly deep cut in expected Wii U sales. Nintendo was originally expecting to move 5.5 million Wii U units, now it turns out the company is only expecting to move 4 million and this number could be lower since only 3.06 million have been sold thus far.
Iwata would later apologize for these lower than expected sales figures during an investor relations meeting held the following day and would also take full responsibility for what has happened.
"As [Nintendo senior managing director] Yoshihiro Mori has already briefed you on our forecast for this fiscal year, you are aware that we cannot help posting operating losses for two consecutive fiscal years. We feel greatly accountable for this severe outlook."
However, he also stressed the faith Nintendo has in the console’s success based on the feedback from satisfied customers but he also recognizes a slight change in strategy is needed to move additional units.
“Those who purchased [the Wii U], although there are issues to be addressed, have shown a certain degree of satisfaction with our product value, but since its value by nature is something that takes time to appreciate and hence cannot be spread amongst society instantly, we have yet to communicate its value to the wider public."
What does this mean? Well, later on in the meeting, Mr. Iwata further elaborated on these comments when he said, “We are putting our lessons from Nintendo 3DS to good use, as I have already publicly stated."
Before anyone asks, no. He isn’t talking about a price drop. In fact, he’s very adamantly against a price drop. What he was referring to is a newly increased focus on marketing.
“Given that it has now become clear that we have not yet fully communicated the value of our product, we will try to do so before the software line-up is enhanced and at the same time work to enrich the software lineup which could make consumers understand the appeal of Wii U."
While I still hold the belief that a small price drop would help, I do think a hefty marketing blitz is certainly a great idea (it’s been working well for the 3DS) and personally I think its overdue. How many Wii U TV ads have you seen since Christmas?
Although, I think the company should definitely give the “play exclusively on the GamePad” feature a harder push, especially given the slight lack of games (other than NSMBU and ports and perhaps Tank! Tank! Tank!) that are currently available. Seriously, its quite astonishing how a feature parents and anyone else who shares a TV would find greatly appealing is so underplayed in the mainstream ads. When more blockbusters like Lego City Undercover, The Wonderful 101, and Pikmin 3 begin to come out, that’ll be the time to begin putting the bigger emphasis on the software line-up.
I’ve said it many times before and I’ll say it again, “Even though I don’t think it’ll catch on like the Wii did, I have faith in the Wii U”. I know it’s a bit on the gimmicky side, but it’s also a great piece of technology and there’s plenty of potentially great games making their way onto the platform. But in order for it be a success, Nintendo is really going to have to make a huge effort get gamers and developers from all walks of life to hop on board.
I especially say this now since Iwata’s current goal is for Nintendo to earn a 100 billion yens worth of operating profit in the next fiscal year. Considering the company is primed to make a 14 billion profit this year, he has quite a tall mountain to climb.
Here’s hoping he can reach the peak.
» Tagged In: #Nintendo, #Ryan Conway, #Satoru Iwata, #Wii U
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g1 DISCUSSIONS
darkhyrulelord
Hmm...not surprising but I wouldn't mind a price drop in the near future.
JxL
No shocker here seeing as much dust as all the Wii's gathered over the years who wants to pay 350 bucks for a paperweight? Get my shotgun, Nintendo needs to be put out to pasture, they had a good run but its time to put em down.
ChaosLord121
Get out.
JxL
Never! Well not until Craig bans me at least...but other then that....Never!
Black_Star
You sir, are the reason modern games are all shooters and MMO's, Nintendo is the only company trying to innovate and do things different in gaming, we NEED them to stay afloat. Also, The Wii U may not be where they want it to be yet, but it has generate more revenue than the Wii did at this point by over 30 million. Sales will climb as more exclusive titles and AAA games come out. The Nintendo direct shows a small bit of how they will improve, I dont see any improvements from Sony or Microsoft, and the new PS3 slimmer "Slenderstation?" sucks hard.
JxL
I don't really need innovation...hell I don't even want new consoles. The 360 and PS3 are great consoles and I don't see any need for innovation or better graphics or some kind of cheesy accessory. I just want good games and 9 times out of 10, Sony and Microsoft's systems' are the ones to deliver. When I go into a game store and look at the Wii, WiiU, and Gamecube selection of games its just sad. If you exclude the non-exclusive games, (which are superior on ps3 or 360 anyway) I can count the number of games worth playing on one hand for all of Nintendo's systems going back to the N64.
LeoSmashRoyale
Of course its not selling well. No virtual console except what u move over, only a few good games at the moment, and its a bit pricey. BUT!!!!! There is hope. With Pikmin 3, Legend of Zelda Wind Waker HD, and the biggest seller for it...The New Smash Bros, hit the market, the consoles will FLY off the shelf. I also believe they would if they release Mother 2/Earthbound onto the new Virtual Console here in the states. They should have anticipated this. Nintendo Land and New Mario Bros U are AWESOME games, but they need more than just those 2 for a good launch. (Not saying that the other games out for it are bad, those 2 were just the only ones that interested me.) Just give it a bit more time Nintendo. I love this system, it just needs a bit more stuff for it.
Nitroklop
From my understanding they're already selling the console at a loss, it would be silly to expect a price drop.
I'd definitely say the reason for the lack of sales is simply the lack of great titles available at the moment. I have many friends who are simply waiting out on a select few games before their purchase.
Steeler
So much potential in games. No new franchises and lots of the older franchises have been neglected. Seriously, Star Fox needs a sequel already.
Black_Star
Agreed, and the online multiplayer needs the same love as the miiverse, like on the 3ds where u can chat and see a live video feed of your opponents, come on Nintendo, dont drop the ball, you got this dammit!